STERLING INFRASTRUCTURE, INC. 8-K

What Happened
Sterling Infrastructure, Inc. (STRL) announced on July 2, 2026 that it entered into a Second Amended and Restated Credit Agreement with its lenders and BMO Bank N.A. as administrative agent. The amendment increases the company’s borrowing capacity by $1.05 billion and establishes initial revolving commitments of up to $1.5 billion (including sublimits for letters of credit and swing line loans). The facility matures on July 2, 2031 and replaces the prior credit agreement dated June 5, 2025.

Key Details

• Revolving Loans: up to $1.5 billion total; includes a $600 million sublimit for letters of credit and a $50 million swing line sublimit. As of July 2, 2026, $90 million was outstanding under the revolver.
• Incremental Facility: option to add term loan tranches, increase revolver, or incur pari‑passu secured debt up to the greater of $500 million or 100% of pro forma EBITDA, plus an unlimited amount if post‑transaction Total Net Leverage Ratio ≤ 2.0:1.
• Covenants: Total Net Leverage Ratio must not exceed 3.50:1 (with up to two limited “covenant holidays” to 4.00:1 under specific acquisition conditions); Interest Coverage Ratio must be at least 3.00:1.
• Pricing & security: Loans bear interest at base rate or SOFR plus a margin (the agreement removed the prior 10 bp SOFR spread adjustment). Obligations are guaranteed by subsidiary guarantors and secured by substantially all company and guarantor assets.
• Uses and fees: Proceeds may be used for refinancing existing debt, capital expenditures, permitted acquisitions and general corporate purposes; the company will pay customary fees to lenders and the agent.

Why It Matters
This amendment materially increases Sterling’s liquidity and financial flexibility by expanding its revolving credit to $1.5B and creating a structured path to add more funded capacity. For investors, the larger and secured credit facility reduces near-term refinancing risk, supports planned capital spending and acquisitions, and sets clear leverage and interest‑coverage limits the company must meet. Key metrics to watch going forward are borrowings on the revolver, the Total Net Leverage Ratio and Interest Coverage Ratio to ensure covenant compliance.